Madison restaurant gift certificate

Explain 'why' to build member loyalty

Don't overlook perhaps the best resources your credit union has to ensure member loyalty. They're sitting right in your lending department.

I'm talking about your loan officers-those folks who initiate and maintain the closest contact with your most active members.

Think about it. When members come in looking to borrow, they open wide their financial life. Sure, a shiny new car is what they want to talk about. But if your loan officers are taught to ask the right questions, they skillfully can inject discussions of debit cards, direct payroll deposit, and credit insurance into the loan conversation. Not only are loan officers helping members and your bottom line, they're creating a bond that will keep members loyal for years to come.

Most credit unions have member relationship skills training programs. But what they often overlook is a follow-up coaching and rewards system to encourage staff to continue using those skills.

Active listening, for example, becomes second nature when it's practiced and followed by immediate reward. The reward can come when members share their financial need and your loan officer satisfies it. That's a big reward, and the loan officer feels confident and pleased about doing a good job.

But additional rewards often pay bigger dividends. They can take the form of a pat on the back, a crisp $20 bill, or a gift certificate.

Restaurant certificates, which allow employees to treat themselves, family members, or friends, are effective rewards. The invited guest, grateful for the free dinner, further acknowledges and reinforces the employee's positive job behavior. "Bye, mom. Work hard today so we can go to Pizza Joe's again," the children exclaim as they leave for school. How's that for positive reinforcement?

Members' needs aren't always obvious. That's why it takes training to ask the right questions. A discussion about a car loan then becomes an opportunity to gather members' complete financial picture. Loan officers may uncover a lack of insurance, the desire for a formal savings plan, or a major credit card debt burden. At the end of the day, members have a loan and the peace of mind that they have a trusted financial counseling source. And the credit union has gained a loyal member.

SHOW THE 'WHY'

Make sure the "why" is at the heart of your loan officer training program. If employees know why you want them to promote your products, they'll be more successful. The reasoning you offer can be as simple as explaining you're in business to serve members and to generate income so your credit union can remain strong in this mission of service.

Explain to staff that the more products and services members have with your credit union, the more likely they'll remain loyal for life. That could encompass a first car loan, life insurance, a mortgage, and long-range savings plans.

You also can demonstrate how income from loans, share certificates, or credit cards affect your bottom line. Capital from these sales grow the credit union, pay employee benefits, and improve member service.

Reinforce the message by reminding staff they're serving members the way members want to be served. If you have a checking account that's better than your competitors', tell members. They'll appreciate both the checking account and that you're providing valuable solutions to their financial challenges. No hard-sell is necessary. When presented properly, your services will sell themselves.

Hold regular training sessions and refreshers with your lending staff. Coach them when they're on the job, and reward them when they succeed. Always tell them "why" and you'll get more understanding and buy-in. Ultimately, you'll be rewarded with loyal members and a growing credit union.

Bill Klewin | CUNA Mutual Group

BILL KLEWIN is assistant vice president, Loanliner products, with CUNA Mutual Group, Madison, Wis.

Contact Bill Klewin at 608-231-7009 or at bill.klewin@cunamutual.com.